Playtech acquires Mobenga

RNS Number : 6945K

Playtech Limited

20 July 2011

 



Playtech Limited

('Playtech' or the 'Company')

Playtech acquires leading mobile platform developer Mobenga

Playtech, (AIM:PTEC) the leading provider of software and services to the online, mobile and land-based gaming sector, today announces it has entered into an agreement to acquire the entire issued share capital of Mobenga AB (Mobenga). Mobenga is the leading provider of mobile sportsbook betting platform and has a fast growing base of customers, including major brands such as PaddyPower, Unibet, Skybet, Stan James, and Nordicbet.  

The consideration for the acquisition comprises an initial amount of approximately €8 million subject to final working capital adjustments, and further consideration based on a 6x multiple of the profit before tax of the business in 2013, capped at €15.8 million. The initial amount has been financed from Playtech's existing cash resources.

Mobenga has developed a market-leading mobile solution delivering a sportsbetting offering on to handheld devices, including smart phones and tablets, across Apple iOS, Android and HTML. This provides a fully customised and highly flexible offering allowing an operator to properly reflect its brand through the design, look and feel of its mobile channel, complementing its online offering. The solution offers operators a range of features such as a touch user interface (TUI) and advanced functionality, including live video streaming which is fully integrated with its existing platform.

For Playtech, the acquisition brings highly regarded technology in a segment viewed as being a key contributor to future growth in online gaming. It will also facilitate the integration with other mobile gaming offerings such as casino or games, positioning Playtech as the market leading mobile gaming provider across a broad range of products.

Mobile is delivering an increasing share of new customers to sportsbetting, with a number of major operators reporting that more than 30% of their recent sports customers are betting through mobile devices. Lifetime values of players active on mobile have been higher than those playing solely online, with a greater proportion of in-play betting and higher average bet sizes.

Founded at the end of 2005, Mobenga won the prestigious "Rising Star of the Year" award at the recent eGaming Review B2B awards in 2011. With the continued growth in the customer base in 2011 it achieved profitability in Q2 2011 and on the current run rate is expected to be profitable for the full year.

Playtech's CEO, Mor Weizer said: "Recent developments in mobile gaming are increasingly important in driving player acquisition and delivering demonstrable revenue streams. Sportsbetting has always been the core product for many operators - one which creates different cross selling opportunities to other gaming products. This deal will position Playtech as the leading mobile gaming provider to take best advantage of the growth in mobile gaming and to integrate sportsbetting alongside its existing mobile casino, poker and bingo offerings providing the operators the ability to offer a complete multi-product mobile gaming solution."

"The Mobenga team has successfully developed and rapidly deployed a flexible solution which is highly regarded by many of the industry's largest operators and are growing their licensee base strongly. By integrating such a proven and sophisticated mobile platform into our offering, and gaining access to the excellent skills and know how of the Mobenga team, we continue our strategy of positioning Playtech as the preeminent independent software provider. We are delighted to welcome Mobenga into the Playtech family."

Christian Rajter, founder and CEO of Mobenga, added: "I am very excited by the opportunities this deal brings. It will help us take Mobenga to the next level and gives us exposure to the widest possible group of potential licensees. It underpins the future growth of the business and we look forward to being part of the Playtech team and contributing to the development of a leading mobile capability integrated into the market's leading gaming platform."

- Ends -

For further information contact

Playtech Ltd Mor Weizer, Chief Executive David Mathewson, Chief Financial Officer Ross Hawley, Head of Investor Relations c/o Pelham Bell Pottinger	[phone]
Collins Stewart Piers Coombs / Bruce Garrow	[phone]
Deutsche Bank Andrew Smith	[phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games.

Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech has some 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services. 

www.playtech.com 

 

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